Green Bond

For over 100 years, the Asahi Group has been enjoying nature's gifts such as water, agricultural product and so on. In order to pass on the nature’s gifts to the future generations by actively promoting efforts to address a wide range of environmental issues, the Group established Asahi Group Environmental Vision 2050 in February 2019 and updated it in February 2023(“New Vision”). The New Vision states, "Planet Positive," as what the Group would like the world to be like, and aims to reduce the burden on the environment from its business to zero, and to maximize value to the global environment through circularity.
In the Vision, the Group sets 4 pillars of its environmental initiatives at 1. Climate Change, 2. Packaging, 3. Agricultural Raw Materials, and 4. Water Resources, and defines what the Group would like the world to be like in 2050, then promotes measures for the achievement of the New Vision.
The Group issued Green Bonds (Unsecured Corporate Bonds No. 14) within the Japanese domestic market in October 2020 and issued more Green Bonds (Unsecured Corporate Bonds No. 20) within the Japanese domestic market in March 2023. With the proceeds from the green bonds, the Group commits to further accelerate its efforts to work towards the realization of a sustainable society as well as the growth of its business operations.

Green Bonds(Unsecured Corporate Bonds No. 20)

The Asahi Group plans to use the proceeds from the green bonds for capital investments, promotion of renewable energy for the energy to be used and initiatives for CO2 absorption in Tosu Brewery of Asahi Breweries, Ltd., which is scheduled to commence operations in 2026, as well as procurement of recycled PET and biomass plastic, and purchase of renewable energy for the entire Group.

Summary of green bonds

Issuer Asahi Group Holdings, Ltd.
Maturity 5 years
Issue amount 25.0 billion yen
Issuance March 8, 2023
Use of proceeds
  • Capital investments, Promotion of renewable energy for the energy to be used and Initiatives for CO2 absorption in Tosu Brewery of Asahi Breweries, Ltd. Tosu Brewery
  • Procurement of recycled PET, Procurement of biomass plastic
  • Purchase of renewable energy
Lead managers Nomura Securities Co., Ltd., Daiwa Securities Co. Ltd., SMBC Nikko Securities Inc., Mizuho Securities Co., Ltd.
Green bond structuring agent※ Nomura Securities Co., Ltd.
  • This organization supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on obtaining second-party opinions.

Second-Party Opinion of Green Bond Eligibility

The Asahi Group received a Second-Party Opinion from Japan Credit Rating Agency, Ltd. to ensure transparency and alignment with the 2021 Green Bond Principles and the Green Bond Guidelines 2022, and to attract more investors.

Related Information

Investment Announcements for Asahi Group Green Bond

  • JA Aichi-Kita
  • JA Aichi-Nishi
  • Asset Management One Co., Ltd.
  • The Awa Bank, Ltd.
  • Ishikawa Prefectural Credit Federation of Agricultural Cooperatives
  • The Ibaraki-ken Credit Cooperative
  • The Gamagori Shinkin Bank
  • KOITO MANUFACTURING CO., LTD.
  • THE SAIKYO BANK, LTD.
  • The Sawayaka Shinkin Bank
  • Jissen Women’s Educational Institute
  • SUWA SHINKIN BANK
  • THE SETO SHINKIN BANK
  • Sony Assurance Inc.
  • The Dai-ichi Frontier Life Insurance Co., Ltd.
  • The Chikuho Bank, Ltd.
  • Choshi Shoko Shinyokumiai
  • The Toho Bank, Ltd.
  • Nissay Asset Management Corporation
  • THE HACHIJUNI BANK, LTD.
  • The Higashi-Nippon Bank, Limited
  • The Hekikai Shinkin Bank
  • North Pacific Bank, Ltd.
  • THE HOKURIKU BANK, LTD.
  • Mitsui Sumitomo Insurance Company, Limited
  • Mitsui Direct General Insurance Company, Limited
  • Mitsubishi UFJ Trust and Banking Corporation
  • The Musashino Bank, Ltd.
  • Meiji Yasuda Asset Management Company Ltd.
  • MORI NO MIYAKO SHINKIN BANK
  • The Yamaguchi Bank, Ltd.

Framework

For the issuance of its green bond, the Asahi Group has formulated a green bond framework which specifies Asahi's policy concerning the four core components (1. Use of proceeds, 2. Process of project evaluation and selection, 3. Management of proceeds, and 4. Reporting), which are defined in the 2021 Green Bond Principles of the International Capital Market Association (ICMA) and Green Bond Guidelines 2022 of Japan's Ministry of the Environment.

Use of proceeds
  • Construction of Asahi Breweries, Ltd. Tosu Brewery (Initiatives toward achieving Asahi Carbon Zero): Capital investments, promotion of use of renewable energy, and initiatives for CO2 absorption in Asahi Breweries, Ltd. Tosu Brewery
  • Procurement of recycled PET, procurement of biomass plastic (Initiatives toward using sustainable packaging):
  • Procurement of raw materials that follow the guidelines or are certified Purchase of renewable energy (Initiatives toward achieving Asahi Carbon Zero): Purchase of electricity from renewable energy sources at operating companies inside and outside Japan
Process of project evaluation and selection Projects that are eligible to receive the proceeds raised through these Green Bonds are evaluated and selected by Asahi Group Holdings’ Corporate Strategy Board or at each Group company’s management meetings in accordance with the Group’s Sustainability Strategy, which was determined by the Global Sustainability Committee.
Management of proceeds The proceeds from the Green Bonds will be managed by Finance at Asahi Group Holdings, Ltd. under a special Green Bond bank account. Until the Green Bonds proceeds are fully allocated, they will be held in cash or cash equivalents, and tracked and managed by Finance on a quarterly basis using an internal management system.
Reporting Until the total amount of Green Bond proceeds is allocated to eligible projects, or as long as there are Green Bonds outstanding, Asahi Group Holdings will report the status of proceed allocation on its corporate website on a yearly basis. Additionally, as long as there are Green Bonds outstanding, the company will report the positive environmental impacts of eligible projects on its corporate website on a yearly basis in the same manner as it reports the status of proceeds allocation.

Related Information

Green Bonds (Unsecured Corporate Bonds No. 14)

The Group plans to use the proceeds from the green bonds mainly for procurement of recycled PET and biomass plastic, purchase of renewable energy and forest conservation activities at the Group-owned forest, “Asahi Forest.”

Summary of green bonds

Issuer Asahi Group Holdings, Ltd.
Maturity 5 years
Issue amount 25.0 billion yen
Issuance October 15, 2020
Use of proceeds
  • Capital investments, Promotion of renewable energy for the energy to be used and Initiatives for CO2 absorption in Asahi Breweries, Ltd.Tosu Brewery
  • Procurement of recycled PET, procurement of biomass plastic
  • Purchase of renewable energy
Lead managers Nomura Securities Co., Ltd., Daiwa Securities Co. Ltd., SMBC Nikko Securities Inc. and Mizuho Securities Co., Ltd.
Green bond structuring agent※ Nomura Securities Co., Ltd.
  • This organization supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on obtaining second-party opinions.

Second-Party Opinion of Green Bond Eligibility

The Asahi Group has obtained a Second-Party Opinion from Japan Credit Rating Agency, Ltd. to ensure transparency and alignment with the 2018 Green Bond Principles and the Green Bond Guidelines 2020, and to attract more investors.

Related information

Investment Announcements for Asahi Group Green Bond

  • Asset Management One Co., Ltd.
  • Credit Guarantee Corporation of Ishikawa
  • ICHIMARU PHARCOS Co., Ltd.
  • The 77 Bank, Ltd.
  • SUMITOMO LIFE INSURANCE COMPANY
  • DaitokyoShinkumi Credit Cooperative
  • Tokio Marine & Nichido Fire Insurance Co., Ltd.
  • TOKYO UNIVERSITY OF AGRICULTURE EDUCATIONAL CORPORATION
  • Tokyo Bay Shinkin Bank
  • JA Nishikasugai
  • Nippon Life Insurance Company
  • THE HIGASHI-NIPPON BANK,LIMITED
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
  • Mitsubishi UFJ Trust and Banking Corporation
  • Meiji Yasuda Asset Management Company Ltd.
  • Meiji Yasuda Life Insurance Company
  • The Yamanashi Chuo Bank, Ltd.
  • WASHIN CHEMICAL INDUSTRY CO .,LTD.

Framework

For the issuance of its green bond, the Asahi Group has formulated a green bond framework which specifies the Group's policy concerning the four core components (1. Use of proceeds, 2. Process of project evaluation and selection, 3. Management of proceeds, and 4. Reporting,) which are defined in the 2021 edition of Green Bond Principles published by the International Capital Market Association (ICMA) and Green Bond Guidelines 2022 of Japan’s Ministry of the Environment.

Use of proceeds
  • Initiatives toward achieving Asahi Carbon Zero: Purchase of renewable energy, introduction of energy-saving equipment at plants, introduction of heat-pump vending machines
  • Initiatives toward using sustainable packaging: Procurement of recycled PET, procurement of biomass plastic
  • Initiatives toward promoting sustainable water resources: Forest conservation actives at Asahi Forest
Process of project evaluation and selection Projects that are eligible to receive the proceeds raised through these Green Bonds are evaluated and selected by Asahi Group Holdings’ Corporate Strategy Board or at each Group company’s management meetings in accordance with the Group’s Sustainability Strategy, which was determined by the Global Sustainability Committee.
Management of proceeds The proceeds from the Green Bonds will be managed by Finance at Asahi Group Holdings, Ltd. under a special Green Bond bank account. Until the Green Bonds proceeds are fully allocated, they will be held in cash or cash equivalents, and tracked and managed by Finance on a quarterly basis using an internal management system.
Reporting Until the total amount of Green Bond proceeds is allocated to eligible projects, or as long as there are Green Bonds outstanding, Asahi Group Holdings will report the status of proceed allocation on its corporate website on a yearly basis. Additionally, as long as there are Green Bonds outstanding, the company will report the positive environmental impacts of eligible projects on its corporate website on a yearly basis in the same manner as it reports the status of proceeds allocation.

Related Information

Reporting

Report on Allocation

Approximately 10,000 million yen was allocated to expenditures in eligible projects from November 2020 through June 2022.

Breakdown

Purchase of renewable energy: 1,529 million yen
Introduction of heat-pump vending machines:1,578 million yen
Procurement of recycled PET, procurement of biomass plastic: 6,203 million yen
Introduction of energy-saving equipment at plants: 572 million yen
Maintenance of the Group-owned forest “Asahi Forest”: 117 million yen

Impact Report

1. Status of initiatives toward achieving Asahi Carbon Zero
Amount of renewable energy electricity purchased 154GWh
Amount of CO2 emissions reduced 13,641t
2. Status of initiatives toward using sustainable containers and packaging
Amount of eco-friendly materials used, such as recycled PET and biomass plastic 47,962t
3. Status of initiatives toward promoting sustainable water resources
Overview of Asahi Forest Since October 2020, a total landmass of 2,467 ha has been managed under Asahi Forest, with a groundwater recharge of 11.01 million m³.
  • Certain items were revised based on the most recently available environmental data to ensure appropriate reporting.